Vitalik Buterin is concerned about Ethereum centralization

Participate in Korea Blockchain Week, an event that brings together several titans of the cryptocurrency industry, Vitalik Buterine expressed concern about the centralization of its cryptocurrency, Ethereum.

The good news is that the founder of Ethereum has a plan: to make nodes lighter so they can run on smartphones. Currently, most Ethereum nodes run on specialized servers, such as Amazon Web Services (AWS) and the like.

The bad news is that this development will take one to two decades. Launched in 2015, Ethereum has only eight years of history, but has lost ground to newer projects, such as Solana, which was recently chosen by Visa to conduct stablecoin transactions.

Vitalik Buterin is concerned about Ethereum centralization

According to 2022 data, 50% of Ethereum nodes were on AWS, 15% on Hetzner (the company that banned such services), and another 4% on OVH. That is, Ethereum, while decentralized, is highly centralized in major cloud services today.

One of the reasons is the complexity of the system, which, in addition to a large amount of storage space, also requires more powerful hardware than that used in Bitcoin, for example.

Concerned about this data, Vitalik Buterin promised to solve this problem to the point where Ethereum nodes run on smartphones. His speeches were captured by Cointelegraph during Korea Blockchain Week next Tuesday (5) and Wednesday (6).

“Long term, there is a plan to maintain fully verified Ethereum nodes so you can literally do this on your smartphone.”

The affected updates are already in the team’s plans. The next one, called The Surge, promises to solve cryptocurrency scalability problems. Following are updates The Scourge, The Verge, The robbery (where the node problem will be solved) and The Splurge, as shown in the image below.

Ethereum Update Schedule.  Source: Vitalik Buterin/X.
Ethereum Update Schedule. Source: Vitalik Buterin/X.

The big problem is that it could take up to 20 years for the Purge update to complete, as the founder of Ethereum himself said.

“These technical issues will eventually need to be resolved — maybe in a 10-year time frame, maybe in a 20-year time frame.”

One of the concerns is that this centralization compromises Ethereum’s security. After all, today cryptocurrencies are considered safe precisely because they do not have a central point of failure, which seems to be happening with the Buterin coin, which could lose half of its nodes if AWS, or some regulator, bans such services.

Finally, for all its problems, Ethereum remains the second largest cryptocurrency in the market after only Bitcoin. However, the various competitors also bring their own challenges as they try to balance security, scalability, and decentralization.

Source: Live Coins